China Develops Opportunities For South South Cooperation With Window Opportunities

China's rapid development provides valuable experience for the development of southern countries.

At present, China has entered a middle-income country. As in other middle-income countries, China's capital needs to start moving out.

At present, China's annual funding to other countries in the world is about 100000000000 US dollars, the second largest source of capital in the world, and this upward trend will continue.

In particular, with the introduction of the "one belt initiative", the countries along the belt and road are generally facing a shortage of funds, so the investment in pport infrastructure will be accompanied by the outflow of large amounts of capital in China.

Other South South cooperation countries are still in low income countries, and have the opportunity to achieve rapid development like China's reform and opening up for more than 30 years, so long as there is a way of thinking, there is a way out.

First of all, in every stage of economic development, we must develop industries that are in line with comparative advantages.

Only by conforming to comparative advantage can competitive advantage be formed.

Therefore, for developing countries, the industries that initially developed in line with their comparative advantages must be traditional labor-intensive industries.

The introduction of mature, patented and unrelated technologies to national security in a low cost and low risk way will bring about rapid economic growth.

Second, in the process of economic development, the government must play an active role in the development of comparative advantage.

Because the infrastructure and business environment of a developing country is relatively poor, and the resources available by the government are limited, the government needs to concentrate its efforts on major issues.

For example, in the light of Chinese experience, limited resources can be used in specific areas, such as the construction of special economic zones, industrial parks and processing export areas, providing one-stop services in these areas.

In this case, even if the infrastructure of the whole country is not perfect,

Poor, the economy can also develop rapidly.

China's experience in this respect is worth learning from.

The main reason for China's introduction of foreign capital to achieve rapid economic development is to seek truth from facts. First, we must do a good job in the special economic zones, industrial parks and processing export zones, and provide first-class infrastructure and business environment in these areas, so that we can create jobs, increase exports, create more resources, and drive the development of other regions.

Therefore, other southern countries can also learn from this way to create new growth points and realize that "a spark can start a prairie fire".

Previously, Ethiopia was one of the poorest landlocked countries in Africa. According to this experience, the processing export area was set up and the industry with its own comparative advantages was introduced.

In August 2011, the former Prime Minister of Ethiopia came to China to attract investment and to link up the leather processing industry and shoemaking industry that had comparative advantages.

This is an extremely labor-intensive industry. Although Ethiopia has a lower labor cost, its paction costs are too high and international buyers have no confidence in their products, so there is such a difference.

In October of the same year, a delegation of entrepreneurs in Dongguan, Guangdong, visited Ethiopia to find out that the local wage cost was much lower than that of China. So they immediately hired 8000 workers to return to China for 3 months, and began investing in production in January 2012.

At first, there were only two production lines in the industrial park, employing 600 people, and exported products in March. In May, the enterprise became the largest leather export enterprise of Ethiopia. The number of employed persons increased from 600 to 2000 at the end of that year, and the export of leather in Ethiopia doubled.

Previously, because of poor infrastructure and poor business environment, it was also a landlocked country. No one thought that the manufacturing base of the world factory could be realized in Ethiopia, and the success of Dongguan shoe factory in Ethiopia brought the effect of spark to a prairie fire.

In 2013, 22 enterprises investing in low wage countries invested in Ethiopia, and many international buyers set up procurement offices in Ethiopia.

Since then, other African countries have followed suit.

For example, the capital of Rwanda established a modern garment export enterprise in one year, and now employs more than 1000 people.

The Chinese people speak the way of thinking and decide the way out. Therefore, all the developing countries will have their own way out.

Another important judgement is that

Or will bring opportunities for pformation in other developing countries.

After World War II, a few successful economies from low income to middle income and then into high-income economies share a common feature, which seize the opportunity of international labor intensive processing industry's international pfer.

For example, wage rises in the US after World War II, labor intensive industries such as garments, textiles and simple electronic processing began to shift to areas with more comparative advantages.

In the 50s of last century, Japanese development also grasped the opportunity period by developing traditional labor intensive industries, creating a large number of jobs and exports, and realizing the international pfer of industries.

South Korea, China, Taiwan, China, Hongkong and Singapore, which are known as "four Asian dragons", have also seized the opportunity with Malaysia, Indonesia, Thailand and other countries or regions, vigorously developing labor-intensive processing export industries, and pferring large quantities of their labor force from rural areas to urban manufacturing industries, becoming emerging economies.

By the 80s of last century, wages in these countries and regions had risen and their comparative advantages were lost. China's reform and opening up just caught the opportunity of this window and vigorously launched the labor intensive processing industry in China.

A large number of rural labor force has been pferred to the manufacturing industry of the city, and China's economy has been developing at a high speed.

Now, China has reached the economic development level and income level of Japan and 80s "four Asian dragons" in the 60s of last century, and China is about to lose its comparative advantage.

Therefore, whether China's processing industry is willing to move outside is a strategic choice worth pondering.

Of course, China is also very different from the four small dragons of Japan and Asia.

In the 60s of last century, the Japanese manufacturing industry employed 9 million 700 thousand people. In 80s, the manufacturing industry employed 2 million 300 thousand workers in Taiwan, 1 million 500 thousand in China, 1 million in Hongkong, and 500 thousand in Singapore. The mainland now employs 125 million workers in the manufacturing sector, and 85 million in the labor-intensive processing industry.

In 2020, China will realize the goal of doubling the gross domestic product and the per capita income of urban and rural residents than in 2010, when the wages of ordinary workers will be generally raised by 800 to 1000 dollars. Those industries will lose their advantages and then pfer to the international community.

Therefore, China not only brings experience and capital to other countries in South South cooperation, but also provides window opportunities.

And because of the huge scale of China's industries, many countries will benefit from it.

But after all, the most important contribution of China is to develop the specific thinking and pformation ideas of the economy.

If South South countries can find the conjunction of local advantages from this train of thought, every southern country will gain 20 to 30 years of rapid growth as China does, from low income countries to middle-income or even high-income countries.

Chinese President Xi Jinping has said, "a single flower is not a spring, but a hundred flowers bloom and a spring full garden". The Chinese say "they want to stand up and build up people, and they want to reach them."

While China hopes to develop itself, other southern countries can also develop. This win-win cooperation is also the goal China hopes to achieve in promoting South South cooperation.